Mahatma Gandhi University (MGU) 2005 M.B.A Business Administration Compensation Management - Question Paper

M.B.A. DEGREE EXAMINATION, MAY/JUNE 2005

Faculty of Management Studies

Semester III – Elective – COMPENSATION MANAGEMENT

For Branch II – Elective V
For Branch III – Elective V

Time : 3 Hours Maximum {2003 Admissions – 75 Marks
(Prior to 2003 Admissions – 100 Marks

part A

ans any 6 ques..

describe / Write short notes on :
1. Objectives of compensation.
2. Economic problems in compensation.
3. Norms of wage determination.
4. Social Security.
5. Job valuation.
6. Internal and External Equity.
7. Reward System.
8. Competency based pay.
9. Profit Sharing.
10. Pay structure in PSU.
(6 X three = 18 marks)

part B

11. Explain Labour Market characteristics and Pay Relatives.
Or
12. Discuss the International convention and regulations relating to wage fixation.

13. What behavioural modifications can be brought about by incentive compensation?
Or
14. Explain the impact of employee compensation on Mergers and Acquisitions.

15. Describe the special issues an organization faces in designing the compensation plans for Executives and knowledge workers.
Or
16. What are the different components of International compensation? Briefly discuss every of them.
(3 X 11 = 33 marks)
(3 X 17 = 51 marks)
part C

17. Joseph was red in face, “Its not right! As sales manager with all the responsibility I have, I should get more-not less than the people who work for me !”

Calm down Joe, for heaven’s sake pleaded Anna Chiarizia, HR Director for Homeware products Ltd., “You knew it was possible under the new incentive scheme for the top sales people to earn more than you if they exceeded their targets. And Tina Lim has done that she is our most successful representative ever. What do you want to do, Joe ? Reward performance or punish it? “Of course I want to reward performance fumed Joe, ‘Its just not right that she earns more than me!’

ques. :

(i) What faults may exist in the design of Homeware Products Ltd., incentive program?
(ii) Explain what would you do if you were in Anna Chiarizia?
(iii) What would happen if the incentive plan was redesigned so top-performing representatives would not earn more than Joseph?
(1 X 24 = 24 marks)
(1 X 31 = 31 marks)

Earning:   Approval pending.